Universal Forklifts, Inc The Company Employs a Standard Costing System

Universal Forklifts, Inc.Universal Forklifts, Inc. produces a specialized machine part used in forklifts. For last year's operations, the following data were gathered: $\begin{array}{ll}\text { Units produced: } & 60,000 \\\text { Direct labour: } & 30,000 \text { hours }(a) \$ 9.00 \text { per hour } \\\text { Actual variable overhead: } & \$ 150,000\end{array}$ The company employs a standard costing system. During the year, a variable overhead rate of $4.50 per hour was used. The labour standard requires a half hour per unit produced.
-Refer to Long, Inc. What is the variable overhead spending variance?

A) $20,000 U
B) $20,000 U.
C) $100,000 U
D) $100,000 U.

Correct Answer:

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